After JCrew, Neiman Marcus, and Stage Stores, it is the turn of the chain of clothing J. C. Penney to be overwhelmed by the coronavirus: the company announced on Friday to put themselves under the u.s. system of bankruptcy.
The group of Plano (Texas, south) indicated use chapter 11, a device that allows a business no longer repay its debt restructuring by creditors.
JC Penney said have $ 500 million in cash and have received commitments of funding to the tune of $ 900 million from accounts receivable-operators.
“The coronavirus (COVID-19) has created unprecedented challenges for our families, our loved ones, our communities and our country “, said the boss of J. C. Penney Jill Soltau in a press release.
“Therefore, the american industry of the large-scale distribution of living a new reality profoundly different, which has forced J. C. Penney to make difficult decisions in the conduct of our business,” she continued.
Already in big trouble before the pandemic, the chain will not have withstood the economic shock caused by the coronavirus.
Founded in 1902 in Wyoming by James Cash Penney, the chain has become over time an institution of the great american distribution.
It has survived the Great Depression and became established during the second half of the 20th century, in mega-malls (” mall “), then the symbols of the consumer society in the us.
Like other department stores, its decline, which began a decade ago with the advent of online commerce, was precipitated by the success of Amazon and the “fast fashion” (H&M and Zara).
In February, J. C. Penney employed approximately 90 000 employees and had almost 850 stores in the u.s. territory, according to documents sent to the constable u.s. stock exchange, the SEC.
The company reported a turnover of 10.7 billion in 2019, a decline of more than 7 billion dollars in ten years. J. C. Penney has not been profitable on a fiscal year since 2011.